The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-07-04
THE MIGHTY DOLLAR.
Jay Gould Talks About the Money Making
Art-How Great Losses Are Sustained.

last night Jay Gould could see the lights geam-
ing on his yacht at anchor in the river and hear
the splash of passing steam and sail craft The
crickets chirped, the frogs croaked and the night
birds whistled. The moon full and flooded
the beautiful grounds with light. The air was
balmv with the odor of shrub and flower Tt was
mighty change from the scene in Wall street,
where Mr.. Gould was for years the great genius
of the market-the man who could twist values
upward or knock them down at WILL The
respondent of the World toiled up the
road to the white stone house the eminence.
which looked like a grand palace in the moon
light pull at the silver bell handle brought
a servant who took in the reporters name, and
moment after the visitor conducted to the
little room which does duty Mr.. Goulds home
Office The only thing however, that gives it
business air was table In the middle of the
room, which were piled the fnancier's letters
and papers. After a cordial hand-shake, the
correspondent was invited to seat, and Mr..
Gould lay back in an easy chair. He seemed as
free from care as person who had nothing else
to do but to enjoy life.
II would like to learn from you, Mr.. Could
in what way the most money is to be nader
There are TWO ways In which the great losses
in Wall street are sustained replied Mr.. Gould.
"The first is by getting short of stock, and the
next is by men buy ing what they cannot pay for
The sudden whirs in speculation overwhem
operators. Daniel Drew was worth $16 900, 900,
but he lost money by bearing stocks"
"Who are to be the leaders in the stock mar
ket hereafterl Some of the old leaders have
died and most of the others have retired"
There are just as smart men in the street as
ever there There is S. V. White, for one.
He is man of great ability in speculation. An
other is John d. Slayback, who is man thor
oughly capable of reading and handling the
market might name number of others who
capable of taking prominent parts in the
speculative realms So far l concerned,
as have said before. l am wholly out of the
market / closed up all my contracts year ago
last January, and nothing could induce me to
return to the street. When was manipulating
the market J. had a great many combinations
against me, and had to get up early and con-
tinue at it until late to keep ahead. But have
fought my last fight in the street." said Mr..
Gould, with smile at the recollection of his
bulling and bearing days.
do you believe that as good chances to make
big fortunes the street will be presented in the
future the past2"
II don't see what Is to hinder the making OF
large sums of money. But the great fortunes
will never be made in the street."
Where do you consider the most money is to
be nader
SIN the development. of railroads. The rail-
road interests are the eatest and most favor
able investments. The thing to do is to study
property, and see in what ways it can be i'm
proved and made the most remuneratiye. If you
can buy a railroad ON 10 cents the dollar, and
by developing it make 1t worth par. or 100 per
cent, you readily see how money be
made in it. One plan is to let business grow up
along the road. Commodore Vanderbilt did not
make his money in Wall street, but by the de-
velopment of business on the lines of his roads.
Take the New York Central, for instance. The
road built, and subsequently large cities
grew up along it. Now the road has the business
of those cities. There are times when a large
investor has to go into the market to protect his
stock.
There are times also when great bargains
can be picked up in the market. The bears got
Missouri Pacific down to 60. I took all they
offered, for l knew that par was cheap for it.
When they could not get the stock to deliver. of
course the price advanced"
How came you personally to select railroad
Investments"
was boy. now think railroad train is one
of the grandest sights in the world. like to
the great driving wheels fly round" and Mr..
Gould made circular motion with his hand,
''the sight reveals great triumph of skill"
''What is the difference between railroad con-
structon now and in the pasta"
1'There is very great difference. The Mis-
souri, Pacific is stocked at $l1 900 mile, while
the bonded debt alone of the Union Pacific is
800. 900 mile. There is no realization of what
a great undertaking the Union Pacific was.
Some of the ties cost $40 apiece and the iron rail
cost $3.50 ton. 1t was the first road across the
and was built amid great difficulties
was shocked to the prairies strewn with
mems bones 1t cost many lives to complete the
work The Sioux Indians were lurking about
ready to pick off the men if they ventured away
from military protection.
How. in your estimation, ought the govern
ment settle its claim against the Union Pacifica"
1.-THE government ought only to exact the
principal of the Union Pacifc's debt to it, and
ought to give the company its own time in which
to pay. Then the company could watch the
money market and when that was in favorable
state it could float bond to pay off the indebted
ness. 1t never intended that the company
should pay any more than the principal. The
times have changed and the Union Pacific must
have relief from its large debt. There must be |
q pairing down of the interest and principal to !
put the property nearer to level with the roads
built at the modern cost There to be |
erai more roads built across the continent. The |
the Burlington 81 Quincy and the |
Missouri Pacific are all extending toward the |
Pacific The high of the Union |
Pacific will not enable it to bear their competi-
lion. have not dollars interest IN the Union |
Pacific now. have got out of all properties |
hat have any political relations want to have |
ny investments where they will be free from |
connections l do not want to |
iea with political interests"
tsWhat particular benefit has the government |
derived from the construction of the Union Pa |
:ifc2n
1.-The building of that road settled the Indian |
question and allowed q large standing army to |
DO dispensed with. A small force can be main |
aimed and carried quickly from point to an |
,ther on the railroad lines auel disturbances.
do you make your railroad investments by |
with others, alone2"
Il make my investments separately from
others. Russell Sage does the same way Peo- |
Die suppose we put our money together. That's
lot So We may both be interested in the same
but the investment OF each is sepa-
'ase. know that people do not think our in
about a matter. 1 state the things exactly |
IS they are Even If there was anything |
20 be gained by creating wrong impression,
found that the end could be more easily at
aimed by telling the exact truth than by any
,ther way. People invariably believed exactly
The reverse of what was told Them" said Mr.
Gould with smile. Il strive to get as direct
,rs in the companies with which am connected
strong men and men who will take large inter
,sts. If they have large holdings they are
1atcnful and conservative, and work for the
development of the properties. Mr.. Sage is a
grand old wheel-horse. Ii he can be induced to
AXE interest in a property. he will take a
arge one and stand by it. He never sells his
stock short"
Outside of what your investments yield is
he personal remuneration adequate the at
ention you devote to properties in your official
apacity2"
II receive no salary from any company of
which am an officer. l look to my investments
Wholly for my income When l make the tours
# Inspection of the Missouri Pacific l always
,ay my own expenses"
do you believe. Mr.. Gould, that the break